Alexander Hall Mortgages Types of mortgage Lowest Base Rate Tracker mortgage deals and rates

Tracker Mortgages

With a base rate tracker mortgage the rate of interest you pay is tied to the base rate set by the Bank of England.

Typically the tracker mortgage rate will be set as a percentage above the base rate and although the resulting interest rate is usually lower than a mortgage lender's standard variable rate, this will vary from lender to lender.

Tracker mortgages often have an early repayment charge which varies between lenders. Usually, this only applies during the term of the initial incentive tracker period; however there may be some tracker mortgages which have early repayment charges beyond this period.

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Best tracker mortgage deals

    1. Lender
    2. Initial rate & Lender Fees
    3. Type, period & max loan-to-value(LTV)
    4. Reverting to
    5. The overall cost for comparison
    6. Early Repayment Charges
    7. More details or apply
    1. Nationwide mortgage
    2. Initial rate: 1.49% £999
    3. Tracker 2yrs
      Up to 75% LTV
    4. Reverting to 3.99%
    5. The overall cost for comparison: 3.7% APRC
    6. Early repayment charges: No ERCs
    7. Call 08000 38 37 36 or submit an enquiry.

    1. Halifax mortgage
    2. Initial rate: 1.94% £999
    3. Tracker Until 30/09/2018
      Up to 85% LTV
    4. Reverting to 3.99%
    5. The overall cost for comparison: 3.8% APRC
    6. Early repayment charges: 3% of original loan to be paid until 30/09/2018, Then 1.75%
    7. Call 08000 38 37 36 or submit an enquiry.

    1. NatWest mortgage
    2. Initial rate: 2.49% £1999
    3. Tracker Until 30/09/2018
      Up to 75% LTV
    4. Reverting to 4.50%
    5. The overall cost for comparison: 4.4% APRC
    6. Early repayment charges: 3% of loan to be paid until 30/09/2018
    7. Call 08000 38 37 36 or submit an enquiry.

View today's best tracker mortgages

Representative Example

For example, on a repayment mortgage of £345,000 over a term of 27 years on an interest rate of 1.99%, the initial monthly payment would be £1,376 the total mortgage application fees would be £1,560, the total cost of the loan would be £586,145 and the APRC would be 4.3%.

The above example is representative of a typical product that would be available to at least 51% of AHA clients who proceed with a residential mortgage application. It is based upon our data from actual mortgage applications arranged by Alexander Hall during the 3 months June to August 2016.

The actual rates and products available to you will depend on your individual preferences, needs and circumstances and our expert Mortgage Advisers can assist you further.

Advantages of base rate tracker mortgages

A main advantage of a tracker mortgage is that the difference between the variable rate and the base rate is usually a lot smaller than the margin between a standard variable rate mortgage and the bank base rate so you will end up paying less overall.

In addition, if the base rate falls, the interest payments on your mortgage loan will fall accordingly, no matter how low the base rate goes.

However, remember that the bank base rate can rise as well as fall which can make budget planning difficult.